Posted on : 2023-03-09 04:18:51
Article : Good evening, Friday management TASK 233 -In an immensely competitive market which spoils the consumer for choice, brands must embrace AI and data-driven solutions to deliver the best customer experience while keeping the costs low.
The FMCG industry is worth billions of dollars. To compete and grow, there is a constant need to bring more innovations and improvements. And it’s no longer just about expansion. Instead, it’s more and more about surviving in a market where everyone else is doing it. Leveraging AI for FMCG is particularly relevant as there is a large amount of data to process, operations to optimize, and decisions to make. The potential of AI technology in the FMCG sector is enormous, and it is growing rapidly as it helps improve customer experience, gain predictive insights into customer behavior, and facilitate higher engagement. AI also allows for a lot of automation in commercial processes, which can help save money and time.
In the FMCG and retail industries, product placement is crucial, and choosing the ideal position for a product is one of the most difficult tasks. In order to make the suitable product effective in a store, factors such as what the target demographics are looking for, what things combine well together, and what they have been purchasing must all be considered. AI can perform comprehensive data analysis and then suggest to FMCG companies where each product should be displayed, how much stock is left on each product, and what the perfect price should be. It assists businesses in saving time and human resources while also increasing profits.
By categorizing both distribution retail outlets and customers based on seasonality, location, and demographics, AI for FMCG can go well beyond traditional market segmentation. AI systems can also propose places where specific products are always in great demand in addition to such advanced segmentation. AI systems can assist businesses in selecting the optimal location and retailers for their items by using data from prior years’ sales of various products. For example, if a large number of baby toys have been sold in a given location over the last five years, the AI systems can then recommend product placement suitable for 5-year-olds in the stores in that location.
The bigger the company, higher the number of challenges in all kinds of operations. With many departments, transactions, and documents, it looks like running a company without repetitive and tedious work is unavoidable. However, in every area, where there is a lot of data, there is also a place for optimization, which leads to higher revenue and more effective decision-making. In the Fast-Moving Consumer Goods area, salespeople must focus not only on building relationships but also on a lot of paperwork, planning, and predictions. There are many long-term contracts and frequent orders, and that means a lot of repetitive, analytical work – which takes a lot of time.
There are many ways in which AI technology may help with sales and customer challenges. Just to name a few: AI-powered solutions can improve FMCG sales forecasting and targeting, secondly sales performance can be increased thanks to automating simple tasks, the average cart value can be increased by applying personal recommendations in the newsletters.
Another great area where AI can be used in the FMCG industry is related to supply chain management. AI-powered solutions can improve a lot in FMCG supply chain from process automation, through reduced redundancies, improved demand or supply forecasting, faster deliveries with more optimized routes to decision-making, and all these result in cost reduction. A great real-life example of how to benefit from AI is the case of 7-Eleven. This FMCG company decided to improve in “out of stock” situations by using machine learning techniques to estimate the demand for different goods. AI can help the administration employees clean up the documents, which leads to improvements in efficiency and quality of work and AI-based tools can ensure employees find the right documents quickly and reduce the risk of errors.
Artificial Intelligence has a lot to do like applying predictive analytics that helps make use of all that data and find new opportunities for the business. You can get much more value out of the data you already have, unify that data, and make accurate predictions. The result of the AI-driven decision-making process is that AI generates possibilities from which humans can pick the best alternative given the additional information they have access to. Employees save time by not interfacing directly with data but rather with the possibilities produced by AI.
Post your comments and suggestive perceptive wot examples on AIML based technological solutions which would help many entrepreneurs in their business decisions and applications. Our Management solution for this TASK 233 will be posted on March 2023 on our Good morning, Management Solution for the TASK.
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